Samiksha is a regional HR head in a growing IT Company with a good pay package. She is happy with her job and is able to manage a good work life balance. She has always saved in the right buckets/schemes to ensure her taxes remain low and so far she has not faced a “bad day” as far as money is concerned. But one line of thought that remains at the back of her mind is “Am I on the right track as far as finance is concerned? Is it enough if I save to reduce tax? Do I have to revisit my financial priorities?”
Women can be very good at planning and execution. Today we can proudly quote names of many women who have been achievers in fields that were considered as the “Male domain”. But when it comes to our own finances, are we optimising our capabilities? Are we making “informed choices”?
Here are few tips to help you stay on track:
The comfortable bank balance:
Women have a hectic schedule – especially when they need to balance work and family. “Prioritizing” is a skill-set she automatically picks up at this stage of life. After meeting all expenses, there usually remains a balance in the savings bank account. This is a number she is used to watching and feel comfortable about, as it seems to be a “liquid” cash that can be put to use in times of emergency.
Is it really a convenience?
We have many facilities provided by Banks today – Internet banking, mobile banking, credit cards, debit cards, UPI and the list seems to be growing day by day. All these are created for the “convenience” of the customer. But are they ?
“Alavukku minjinaal amrithamum nanju” which translates as “Even nectar is poison if taken in excess” is a quote which aptly suits our current usage of the facilities provided by Banks and financial institutions.
Though we find the fund transfer, ATM and UPI facilities very convenient, many of us do not realize the cost and the risks associated with it. Since book keeping / accounting for the “non-business” class has become more of a “post mortem” exercise, many of us do not realize what we are charged for the facilities that we use (and sometimes don’t).
You will be surprised to notice (if you look closely) the amount of cost that can be saved on these transactions if they are planned a little in advance.
Pay balances – Do we have a track?
“Do you have a G-Pay?” is a question that’s trending today Amazon, Google, Paytm, BHIM… and the list goes on. These pay balances have made life easier in a way. We don’t have to carry physical cash anymore. But.. Hold on. Do we know what and how much we spend on? We keep topping up these pay balances to meet our expenses. But how many of us take a copy of this in the end of a month and check where our money went?
It’s good practice to maintain one pay balance account and jot down the expenses regularly. This would definitely go a long way in keeping a check on our expenses.
EMI – boon or bane?
Everything is available on EMI today. But do we really gain from this? EMI (Equated Monthly Installments) were products initially brought in by the banks for Housing loans and car loans. Slowly this trickled down to all consumer products purchased and credit card transactions. One should remember that the amount that goes out as EMI every month includes an interest component.
While EMI facility is very useful for investing in long term assets like house and car, it could negatively impact our finances if they are used for purchase of consumer durables. Hence it is wise to steer away from the EMI trap for consumer durables.
“Saving” as a concept should not be mixed up with “Tax-saving” and “Insurance”. These are three different areas and should not be linked while taking decisions.
How can we help you?
Various clauses from the Income Tax Act may be simplified in online contents. But most of the time, it requires professional help in identifying suitable route for specific instances. Similar to nurturing and taking care of personal health, it is important to also keep a tab on one’s financial health. We at Chockalingam Unnamalai & Associates, can help you understand the pros and cons of various choices you make in the context of personal taxation. You can bank on us for a stress free tax filing and related compliances.
Call us at +91 73050 56628 or drop a mail to frontoffice@onesourcevault.com
ITR Filing – Why choose us?
Effective compliance is a key pillar for growing your finances and career/business. Tax compliance in particular could be cumbersome and at times very stressful. We help you to navigate through the maze of changes to tax laws with ease.
We understand and operate on the principle – “Time is money”. We have a reasonable turnaround time (TAT) which ensures timely tax compliance.
We understand the importance of data security and hence operate in a data-secure environment. Onboard us and experience certainty and value for money!
